GLNG signs gas agreement with Meridian

Santo's GLNG project has signed a heads of agreement with the Meridian SeamGas joint venture for gas supply to GLNG's project.

The agreement will start next year, and run for two decades, with the gas price to be oil-linked from 2016.

"The gas will be supplied from the Meridian gas fields in Queensland and delivered into GLNG's gas transmission pipeline, which passes adjacent to the fields," Santos said in a company statement.

The Meridian fields are a joint venture between Westside Corporation and Mitsui E&P, and have a current capacity of 30 terajoules of gas per day.

This latest agreement was welcomed by GLNG vice president downstream Rod Duke, who said the GLNG project is now approaching 80% complete and is on schedule for first LNG in 2015

"GLNG is progressing well and we are on track to deliver our first LNG cargo next year," Duke said.

"Upstream field performance from Fairview and Roma continues to perform either in line or above expectations. All of our gas transmission pipeline is now buried and work has commenced on pushing the pipeline through the marine crossing tunnel, and the first train 2 module shipment left the yard last week," he said.

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